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The City of New York, New York | Popular Annual Financial Report FY 2018 1

For the Fiscal Year Ended June 30, 2018

The City of New York Popular Annual Financial Report

1 Centre Street, New York, NY 10007 • Phone: (212) 669-3500 • www.comptroller.nyc.gov

@nyccomptroller facebook.com/scottstringernyc @nyccomptroller

http://www.comptroller.nyc.gov/

Contents

A Message from the New York City Comptroller ............................ 3

Awards .......................................................................................... 4

Economic Forecast ......................................................................... 5

What Makes Up the City’s Primary Government? .......................... 6

Revenues: Where does the money come from? ............................. 7 Program Revenues – Primary Government ....................................7 General Revenues – Primary Government .....................................8

Expenses: Where does the money go? ........................................... 9 Expenses – Primary Government ...................................................9

The Budget – General Fund .......................................................... 10 Budget Roadmap ..........................................................................11 Budget and Actual – General Fund Revenues ..............................12 Budget and Actual – General Fund Expenditures .........................14

Discretely Presented Component Units ....................................... 16 Health and Hospitals Corporation ................................................16 Water and Sewer System .............................................................17 New York City Housing Authority .................................................18 All Other Discretely Presented Component Units ........................19

Capital Projects ............................................................................ 20 Capital Budget and Capital Commitment Plan .............................22

Benchmarks: How do we compare? ............................................. 23

Borough-Wide Statistical Information ......................................... 24

Things to Know ............................................................................ 25 Checkbook NYC .............................................................................25 Services for the Public and Businesses .........................................25

Accounting Terms ........................................................................ 26

Our Elected Officials .................................................................... 27

The Government of The City of New York .................................... 28

Acknowledgements ..................................................................... 31


Popular Annual Financial Report Fiscal Year 2018

A Message from the New York City Comptroller I am pleased to present the fourth New York City Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2018. This report gives New Yorkers a window into their local government and its budget functions. It is a user-friendly companion to the City’s 2018 Comprehensive Annual Financial Report (CAFR), which offers a detailed picture of our City’s financial condition. While the PAFR contains much of the same information, the presentation is more concise and straightforward.

The budget funds critical services such as education, human services and public safety to New Yorkers in all five boroughs. The budget also prioritizes and supports infrastructure investment such as building and maintaining schools, parks, and other important projects that define our City. The size and complexity of our budget matches the scale and diversity of our City, and the PAFR offers a succinct report on how our tax dollars are being spent.

Like our interactive Checkbook NYC website, the PAFR is an important transparency tool, giving open and expansive access to the inner workings of City government. The report offers citizens, businesses and community groups a breakdown of our revenues and expenses, as well as an annual snapshot of our local economy.

The PAFR focuses on New York’s “primary government,” which includes all City agencies as well as the legally separate organizations with which the City has significant financial ties. The report also provides an overview of our local economy, economic comparisons with other cities, and key statistics for each borough. It is intended to be a useful guide to understanding the City’s fiscal condition and economic priorities in the year ahead.

Sincerely,

Scott M. Stringer

Office of the New York City Comptroller Scott M. Stringer 3

Awards

Popular Annual Financial Report The Government Finance Officers Association of the United States and Canada (GFOA) awarded The City of New York the Award for Outstanding Achievement in Popular Annual Financial Reporting for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2017. The City of New York has received this national award for the last three consecutive fiscal years. The award recognizes conformance with the highest standards for preparation of state and local government popular reports. In order to receive the award, a governmental unit must publish a PAFR whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. The report must satisfy both generally accepted accounting principles and applicable legal requirements. We believe our PAFR continues to meet the Award for Outstanding Achievement Program’s requirements, and we are submitting it to the GFOA for consideration. The PAFR is a summary of the Comprehensive Annual Financial Report (CAFR) for the year ended June 30, 2018. The financial data in the PAFR derive from the more detailed CAFR.

Comprehensive Annual Financial Report In addition to receiving the Award for Outstanding Achievement for its PAFR, The City of New York’s CAFR for the fiscal year ended June 30, 2017, was awarded the Certificate of Achievement for Excellence in Financial Reporting by the GFOA for the 38th consecutive year. The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized CAFR whose contents conform to program standards. We believe our CAFR continues to conform to the Certificate of Achievement program requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.

Both awards are valid for a period of one year only. The PAFR and the CAFR are consistent with generally accepted accounting principles (GAAP) and the guidelines established by the Government Accounting Standards Board (GASB), and available on the Comptroller’s website at comptroller.nyc.gov.


https://www.comptroller.nyc.gov/

Economic Forecast The pace of economic growth accelerated in both the City and the nation in fiscal year 2018 relative to fiscal year 2017. The City’s economic growth was supported by gains in payroll jobs, improvements in household employment, and increases in average hourly earnings. Both the City and the U.S. economies are expected to grow even more strongly in fiscal year 2019. Near-term growth will be fueled by high consumer spending, increasing wages, growing corporate profits and high consumer confidence. However, the primary risk to the forecast is the Federal Reserve could raise interest rates to levels where economic growth slows or even ceases. Ongoing trade tensions also pose some risks. Given the service-oriented nature of the New York economy these will mostly be in the form of higher prices for imported goods, fueling inflation.

The City’s private sector added 76,600 jobs, a gain of 2.0%, in fiscal year 2018, faster than the 1.8% gain in the nation.

The unemployment rate fell to 4.3% in fiscal year 2018, the lowest rate on record; the labor-force participation rate rose to a record high of 60.9%; and the employment-to-population ratio rose to 58.3%, the highest on record.

Unemployment rates improved in all five boroughs falling to 5.4% in the Bronx; 4.1% in Brooklyn; 3.6% in Manhattan; 3.5% in Queens; and 4.0% in Staten Island. These are record lows for each of New York City boroughs in more than a decade.

New York City Unemployment Rates by Borough

0%

2%

4%

6%

8%

10%

12%

14%

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Bronx Brooklyn Manhattan Queens Staten Island

Source: New York State Department of Labor


What Makes Up the City’s Primary Government? The Primary Government is made up of various City agencies and other entities established to perform the City’s core functions and duties for its citizenry. Component units are legally separate organizations for which the City is financially accountable. Component units that are operationally codependent upon the primary government are in substance the same as the primary government and are included, or Blended, into the primary government. In addition to governmental activities, which account for services provided to the City’s citizenry, the primary government comprises a component unit distinction known as Business-Type Activities. The business-type activities distinction accounts for fee-based services that the City provides to third parties.

When comparing the revenues and expenditures presented in the governmental fund financial statements to the revenues and expenses recorded for the primary government within the statement of activities in the CAFR, the differences that exist are due to the different methods of accounting used to prepare these statements. Financial reporting for the primary government within the statement of net position of the CAFR, is designed to provide readers with a broad, long-term, overview of the City’s finances in a manner similar to a private-sector business. The primary government’s long-term focus calls for the recording of both assets and liabilities that exceed one year. In contrast, the governmental fund financial statements which is contained in the CAFR, is limited to reporting on near-term resources, similar to the City’s budget; its near-term focus emphasizes the recording of liabilities that are expected to be due and assets that are available to be used within the year.

The programs and functions listed are funded by two major sources: Program Revenues, including grants, (see page 7) and General Revenues (see page 8). Program revenues are collected and available for their respective programs and functions. General revenues are available to be used for any program or function and is mostly composed of tax revenues. Throughout this report, underlined accounting terms are further defined on page 26.

New York City Hall and the David N. Dinkins Municipal Building/Shutterstock


Revenues: Where does the money come from?

Program Revenues – Primary Government In fiscal year 2018, program revenues were over $29 billion. Education had the most program revenues, overwhelmingly from grants, consisting of almost $13 billion, followed by social services, at over $5 billion. Program revenues increased in fiscal year 2018 by $108 million from fiscal year 2017. Increases in program revenues in education and housing had the greatest effect on the increase.

Program Revenues FY 2018 FY 2017 FY 2016

Category (In millions)

General Government $3,709 $3,905 $2,632

Public Safety And Judicial 1,002 996 1,015

Education 12,763 12,431 11,792

City University 659 665 644

Social Services 5,165 5,375 4,901

Environmental Protection* 1,487 1,464 1,362

Transportation Services 1,764 1,771 1,809

Parks, Recreation And Cultural Activities 176 172 280

Housing 1,085 995 966

Health 1,042 962 997

Libraries 1 7 9

Total Governmental Activities $28,853 $28,743 $26,407

Total Business-Type Activities** 197 199 155

Total Program Revenues - Primary Government $29,050 $28,942 $26,562

* Includes payments to the City for costs of the Water and Sewer system from water and sewer rate payments. ** Business-Type Activities refers to the following entities: Brooklyn Bridge Park, Trust for Governor’s Island, World Trade Center Captive Insurance Company, Inc., and Tax Lien Trusts. Please refer to the fiscal year 2018 CAFR for additional information regarding the goods and services provided by these entities.


Revenues: Where does the money come from?

General Revenues – Primary Government In fiscal year 2018, general revenues were almost $60 billion, an increase of almost $3.3 billion from fiscal year 2017. Real estate taxes were the greatest single source for the increase, totaling over $26 billion, largely due to growth in billable Assessed Value during the fiscal year. In addition, increases in personal income taxes were due to changes to the New York State School Tax Relief Program, and prepayments precipitated by the Federal Tax Cuts and Jobs Act.

General Revenues (In millions)

General Revenues FY 2018 FY 2017 FY 2016


Real Estate Taxes (RET) $26,301 $24,587 $23,171

Sales & Use Taxes (SUT) 8,666 8,307 8,535

Personal Income Taxes (PIT) 13,598 11,257 11,565

Income Taxes, Other (ITO) 6,548 7,876 6,761

Other Taxes* (OT) 3,420 3,346 3,541

Investment Income* (II) 274 227 195

Unrestricted Federal & State Aid (UFSA) 252 311 258

Other* (O) 605 433 636

Total General Revenues - Primary Government $59,664 $56,344 $54,662 *Includes Business-Type Activities General Revenues

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

RET SUT PIT ITO OT II UFSA O

FY 2018 FY 2017 FY 2016


Expenses: Where does the money go?

Expenses – Primary Government Fiscal year 2018 expenses (including all related personnel and applicable pension and benefit costs) were almost $92 billion. The City incurred the most expenses for education, at over $30 billion, due to the growth in mandated costs for special education pupils, growth in charter school enrollment and related increases in per pupil tuition levels and increased facilities costs. The increase of expenses of $5.8 billion in fiscal year 2018 from fiscal year 2017 is mostly attributable to $1.3 billion for Other Postemployment Benefits and nearly $1 billion for Capital Projects City-wide, which is allocated within the City agency categories below.

Expenses (In millions)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$35,000

$40,000

GG PSJ E CU SS EP TS PK H HE L DSI BTBCU

FY 2018 FY 2017 FY 2016

Expenses FY 2018 FY 2017 FY 2016


General Government (GG) $6,525 $5,360 $5,260

Public Safety And Judicial (PSJ) 19,466 18,962 19,681

Education (E) 30,367 28,840 29,295

City University (CU) 1,261 1,253 1,342

Social Services (SS) 16,144 15,402 14,969

Environmental Protection (EP) 4,248 3,570 3,710

Transportation Services (TS) 2,789 2,542 2,785

Parks, Recreation And Cultural Activities (PK) 1,340 1,265 1,150

Housing (H) 2,765 2,395 2,007

Health (HE) 3,318 2,874 3,278

Libraries (L) 429 421 458

Debt Service Interest (DSI) 3,035 2,959 2,933

Business-Type Blended Component Unit (BTBCU) 288 322 241

Total Expenses - Primary Government $91,975 $86,165 $87,109


Manhattan/Shutterstock


The Budget – General Fund

Budget Roadmap This Budget Roadmap is designed to help New Yorkers and others to understand the City's budget process. The New York City budget is the place where many of the City’s policy decisions are made and where policy objectives are articulated and implemented in concrete terms. The scope of the budget includes all of the City government’s revenues and expenditures — estimated at about $89 billion in 2018.

By January the New York City Independent Budget Office releases its Fiscal Outlook report on expected levels of revenues and expenditures for the upcoming fiscal year. By January 16th, the

Mayor releases the Preliminary Budget, proposed operating and capital expenditures, and forecast of revenues for the upcoming fiscal year, plus three subsequent years. The City Council holds budget hearings with City agencies and the public.

By April 26th, the Mayor presents the City Council with the Executive Budget — a revised budget proposal for the upcoming year and a complete financial plan for the next three years. The City Council again holds budget hearings and begins negotiations with the Mayor.

*The Adopted Budget establishes the starting point for the fiscal year and becomes a blueprint for how the City government spends money. The Adopted Budget covers one fiscal year, which in New York City begins on July 1st of each year and ends on June 30th of the following year.

By June 5th, the City Council completes negotiations with the Mayor and then votes to adopt a budget that will serve as the basis of government operations for the upcoming fiscal year.

*The Adopted Budget becomes a Modified Budget as revenue projections change or expenditures are reallocated during the fiscal year. Source: New York City Independent Budget Office


Budget and Actual – General Fund Revenues The General Fund is the main operating fund of the City. It is used to account for all financial resources not accounted for and reported in other funds, such as the Capital Projects Fund or the Debt Service Fund. General Fund revenues, as listed below, include tax revenues, federal and state aid (except aid for capital projects), and operating revenues. Revenue budgets help management set financial goals and assist management in planning for future needs and allocation of resources.

Budget and Actual – General Fund Revenues Fiscal Year 2018 (In millions)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

RET SUT PIT ITO OT FSOCA CFS II O

Modified Budget Actual Revenue

General Fund Revenues Fiscal Year 2018 (In millions)

Category Adopted Budget

Modified Budget

Actual Revenue

Better (Worse) Than Modified

Budget

Real Estate Taxes (RET) $26,014 $26,403 $26,408 $5

Sales and Use Taxes (SUT) 8,384 8,643 8,651 8

Personal Income Taxes (PIT) 11,841 13,405 13,411 6

Income Taxes, Other (ITO) 6,565 7,281 7,329 48

Other Taxes (OT) 3,996 3,285 3,306 21

Federal, State And Other Categorical Aid (FSOCA) 22,898 24,209 23,465 (744)

Charges For Services (CFS) 2,642 2,711 2,712 1

Investment Income (II) 110 120 125 5

Other (O) 1,808 2,428 2,073 (355)

Total General Fund Revenues $84,258 $88,485 $87,480 ($1,005)


Budget and Actual – General Fund Revenues Fiscal Year 2017 (In millions)

General Fund Revenues Fiscal Year 2017 (In millions)


Modified Budget

Actual Revenue


Budget

Real Estate Taxes (RET) $24,229 $24,651 $24,680 $29

Sales and Use Taxes (SUT) 8,328 8,260 8,297 37

Personal Income Tax (PIT) 11,577 11,255 11,258 3

Income Taxes, Other (ITO) 6,546 7,190 7,121 (69)

Other Taxes (OT) 3,964 3,244 3,308 64

Federal, State And Other Categorical Aid (FSOCA) 21,986 24,254 23,344 (910)

Unrestricted Federal And State Aid (UFSA) - 57 59 2

Charges For Services (CFS) 2,615 2,657 2,711 54

Investment Income (II) 61 81 73 (8)

Other (O) 1,843 2,689 2,179 (510)

Total General Fund Revenues $81,149 $84,338 $83,030 ($1,308)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

RET SUT PIT ITO OT FSOCA UFSA CFS II O

Modified Budget Actual Revenue


Budget and Actual – General Fund Expenditures The General Fund is the main operating fund of the City. It accounts for all uses of financial resources not accounted for and reported in other funds, such as the Capital Projects Fund or the Debt Service Fund. The General Fund accounts for all expenditures in the Expense Budget that provide for the City’s day-to-day operations. The expense budget helps management set financial goals and review actual performance against these goals.

Budget and Actual – General Fund Expenditures Fiscal Year 2018 (In millions)

General Fund Expenditures Fiscal Year 2018 (In millions)


Modified Budget

Actual Expenditure


Budget

General Government (GG) $3,429 $3,719 $3,495 $224

Public Safety And Judicial (PSJ) 9,817 10,128 10,024 104

Education (E) 24,317 25,081 25,026 55

City University (CU) 1,140 1,158 1,087 71

Social Services (SS) 14,926 15,484 15,208 276

Environmental Protection (EP) 3,008 3,109 3,016 93

Transportation Services (TS) 1,740 1,805 1,757 48

Parks, Recreation And Cultural Activities (PK) 619 634 622 12

Housing (H) 1,385 1,311 1,217 94

Health (HE) 2,093 2,436 2,401 35

Libraries (L) 373 378 378 -

Pensions(P) 9,459 9,520 9,513 7

Judgments And Claims(JC) 692 730 730 -

Fringe Benefits And Other Benefit Payments (FOBP) 5,495 5,788 5,717 71

Lease Payments For Debt Service (LPDP) 152 130 130 -

Other (O) 2,321 272 380 (108)

Total General Fund Expenditures $80,966 $81,683 $80,701 $982

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

GG PSJ E CU SS EP TS PK H HE L P JC FOBP LPDP O

Modified Budget Actual Expenditure


Budget and Actual – General Fund Expenditures Fiscal Year 2017 (In millions)

General Fund Expenditures Fiscal Year 2017 (In millions)


Modified Budget

Actual Expenditure


Budget

General Government (GG) $3,398 $3,471 $3,247 $224

Public Safety And Judicial (PSJ) 9,233 9,831 9,694 137

Education (E) 23,179 23,465 23,318 147

City University (CU) 1,042 1,114 1,067 47

Social Services (SS) 14,281 14,817 14,485 332

Environmental Protection(EP) 3,044 2,967 2,923 44

Transportation Services (TS) 1,729 1,800 1,754 46

Parks, Recreation And Cultural Activities (PK) 587 610 599 11

Housing (H) 1,488 1,328 1,220 108

Health (HE) 1,813 2,271 2,233 38

Libraries (L) 365 371 370 1

Pensions(P) 9,310 9,283 9,281 2

Judgments And Claims (JC) 676 751 750 1

Fringe Benefits And Other Benefit Payments (FOBP) 5,654 5,963 5,910 53

Lease Payments For Debt Service (LPDP) 59 30 30 -

Other (O) 2,087 269 147 122

Total General Fund Expenditures $77,945 $78,341 $77,028 $1,313

$0

$5,000

$10,000

$15,000

$20,000

$25,000

GG PSJ E CU SS EP TS PK H HE L P JC FOBP LPDP O

Modified Budget Actual Expenditure


Discretely Presented Component Units Component units are legally separate organizations for which the City is financially accountable. The financial data of the following component units, which are supported by fees charged for goods or services, are presented separately (discretely) from the financial data of the primary government.

Health and Hospitals Corporation

Revenues

Health and Hospitals Corporation Revenues (In millions) FY 2018 FY 2017 FY 2016 Charges for Services $8,479 $7,859 $7,773 Operating Grants and Contributions 653 865 362 Capital Grants, Contributions and Other 210 156 152 General Revenues 908 826 1,522

Total Revenues $10,250 $9,706 $9,809

Expenses

Health and Hospitals Corporation Expenses (In millions) FY 2018 FY 2017 FY 2016

Personal Services $3,153 $2,832 $2,826 Other Than Personal Services 3,992 3,970 3,658 Fringe Benefits and Employer Payroll Taxes 833 866 849 Pension 404 437 514 Other Postemployment Benefits 346 296 459 Affiliation Contracted Services 1,076 1,069 1,051 Depreciation 312 313 305 Interest Expense 121 117 117

Total Expenses $10,237 $9,900 $9,779

83%

6%

2%

9%

FY 2018

$10.25B

81%

9%

2%

8%

FY 2017

$9.71B

79%

4%

2% 15%

FY 2016

$9.81B

31%

39%

8%

4%

3% 11%

3% 1%FY 2018

$10.24B

29%

40%

9%

4%

3% 11%

3% 1%FY 2017

$9.90B

29%

37%

9%

5%5%

11%

3% 1%FY 2016

$9.78B


Water and Sewer System Revenues

Water and Sewer System Revenues (In millions) FY 2018 FY 2017 FY 2016

Charges for Services $3,674 $3,832 $3,892 Capital Grants, Contributions and Other 20 6 4 General Revenues 204 171 218

Total Revenues $3,898 $4,009 $4,114

Expenses

Water and Sewer System Expenses (In millions) FY 2018 FY 2017 FY 2016

Operations And Maintenance $1,390 $1,385 $1,297 Administration and General 55 51 61 Other Operating Expense 100 51 17 Depreciation Expense 1,043 930 919 Interest Expense 1,172 1,153 1,178 Cost of Issuance 19 23 18 Net Loss on Retirement and Impairment of Capital Assets 49 44 5 Capital Distribution 23 46 11 Bad Debt Expense 18 3 4

Total Expenses $3,869 $3,686 $3,510

94%

1%5%

FY 2018

$3.90B

96%

4%FY 2017

$4.01B

95%

5%FY 2016

$4.11B

38%

1%2%

25%

31%

1%1% 1%

FY 2018

$3.87B38%

1%2%

25%

31%

1%1% 1%

FY 2017

$3.69B37%

2%26%

34%

1% FY 2016

$3.51B


New York City Housing Authority Revenues

New York City Housing Authority Revenues (In millions) FY 2018 FY 2017 FY 2016

Charges for Services $1,052 $1,042 $990 Operating Grants and Contributions 2,154 2,124 2,214 Capital Grants, Contributions and Other 687 641 434 General Revenues 95 103 110

Total Revenues $3,988 $3,910 $3,748

Expenses

New York City Housing Authority Expenses (In millions) FY 2018 FY 2017* FY 2016

Rent for Leased Dwellings $987 $941 $947 General and Administrative 838 847 810 Utilities 555 535 575 Maintenance and Operations 672 708 620 Depreciation 371 358 344 Other Postemployment Benefits 137 168 (97) Protective Services 22 25 23 Tenant Service 18 19 23 Interest Expense 30 29 30

Total Expenses $3,630 $3,630 $3,275 *Fiscal Year 2017 Expenses Restated.

26%

54%

17%

3%FY 2018

$3.99B

27%

54%

16%

3%FY 2017

$3.91B

26%

59%

12%

3%FY 2016

$3.75B

27%

23%15%

19%

10%4%

1% 0%FY 2018

$3.63B

26%

23%15%

19%

10%5%

1%0%

FY 2017

$3.63B

27%

23%16%

18%

10%

-3%1% 1%

0%FY 2016

$3.27B


All Other Discretely Presented Component Units Revenues

All Other Discretely Presented Component Units Revenues (In millions) FY 2018 FY 2017 FY 2016

Brooklyn Navy Yard Development Corporation $65 $89 $108 NYC Industrial Development Agency 101 102 101 NY Business Assistance Corporation - 4 - Build NYC Resource Corporation 2 4 5 NYC Neighborhood Capital Corporation 2 1 - Brooklyn Public Library 143 158 130 Queens Borough Public Library 165 155 152 Economic Development Corporation 766 684 914 Housing Development Corporation 531 429 429 The Mayor’s Fund to Advance New York City 35 - -

Total Revenues $1,810 $1,626 $1,839

Expenses

All Other Discretely Presented Component Units Expenses (In millions) FY 2018 FY 2017 FY 2016

Brooklyn Navy Yard Development Corporation $74 $53 $48 New York City Industrial Development Agency 102 110 104 NY Business Assistance Corporation 1 1 - Build NYC Resource Corporation 3 4 2 NYC Neighborhood Capital 1 1 - Brooklyn Public Library 140 130 125 Queens Borough Public Library 160 151 151 Economic Development Corporation 751 678 814 Housing Development Corporation 322 296 271 The Mayor’s Fund to Advance New York City 21 - -

Total Expenses $1,575 $1,424 $1,515

4%

6%

42%

29%

2%FY 2018

$1.81B

6%6%

10%

10%

42%

26%

FY 2017

$1.63B

6%6%

7%

8%

50%

23%

FY 2016

$1.84B

4%

8%

9%

11%

47%

21%

FY 2018

$1.57B

4%

8%

9%

11%

47%

21%

FY 2017

$1.42B

3%

7%8%

10%

54%

18%

FY 2016

$1.52B


Capital Projects

New York City funds its capital projects utilizing the Capital Budget. The Capital Budget is separate from the City’s General Fund Budget, which pays for operating costs, including the salaries of public servants. The Capital Budget is exclusively used to fund capital projects, such as City construction, purchases of land, buildings, and equipment. The capital program is generally financed by borrowing money, usually through the sale of bonds. The table below lists the authorized expenditures versus actual expenditures for capital projects.

Expenditures vs. Authorized by Capital Projects Expenditures (In thousands)

Category Authorized

Expenditures For FY 2018

Authorized Expenditures

from Inception

Actual Capital Project

Expenditures For FY 2018

Actual Capital Project

Expenditures from Inception

General Government $1,922,069 $29,574,171 $822,837 $22,455,882 Public Safety And Judicial 1,236,654 13,844,353 395,292 10,032,435 Education 3,726,237 56,872,301 2,352,609 49,141,991 City University 125,277 1,704,721 67,305 1,107,565 Social Services 559,241 2,935,373 274,657 2,148,507 Environmental Protection (161,922) 68,929,887 1,977,403 55,760,542 Transportation Services 2,149,275 46,516,208 1,516,057 35,343,501 Parks, Recreation And Cultural

849,762 17,810,868 532,215 13,214,581

Housing 2,015,725 19,580,317 1,411,642 15,581,168 Health 814,100 8,463,360 248,654 6,384,969 Libraries 222,440 2,244,534 41,066 1,211,348

Grand Total $13,458,858 $268,476,093 $9,639,737 $212,382,489


Authorized Expenditures vs Actual Capital Projects Expenditures from Inception to Fiscal Year 2018 (In billions)

Authorized Expenditures vs Actual Capital Project Expenditures for Fiscal Year 2018 (In billions)

10 20 30 40 50 60 70 80

General Government

Public Safety and Judicial

Education

City University

Social Services

Environmental Protection

Transportation Services

Parks, Recreation and Cultural Activities

Housing

Health

Libraries

Authorized Expenditures from Inception Actual Capital Project Expenditures from Inception

($0.5)

$0.5

$1.5

$2.5

$3.5

$4.5

GeneralGovernment

PublicSafety

and Judicial

Education CityUniversity

SocialServices

Environ-mental

Protection

Trans-portationServices

Parks,Recreation

andCultural

Activities

Housing Health Libraries

Authorized Expenditures Actual Capital Project Expenditures


Capital Budget and Capital Commitment Plan While the City Council adopts a Capital Budget each year, the planning and actual expenditure of funds for capital projects generally occurs over a period of years in accordance with City Charter provisions.

Capital Budget: The final Capital Budget is adopted by the City Council with the Expense Budget. Spending for individual capital projects may not exceed the amount appropriated in the Adopted Capital Budget.

Capital Commitment Plan: To track the progress of projects included in the Capital Budget, a Capital Commitment Plan is issued three times each year. The Commitment Plan is published within 90 days of the adoption of the Capital Budget (generally by late September) and updated Commitment Plans are issued in January and April with the Mayor’s budget proposals for future years.

Significant Capitally Funded Projects* in Accordance with the Fiscal Year 2018 Capital Commitment Plan for Fiscal Year 2019

New York City Agencies Project Description Project Amount to Completion

Department of Education General School Construction $4,002,926,000

Department of Citywide Administrative Services One NYC - Energy Efficiency Funding $2,003,104,000

Department of Transportation Rehabilitation of BQE (I-278) $1,479,673,000

Department of Housing Preservation and Development Roof Work to Prevent Mold at Various Developments $1,201,421,000

Department of Environmental Protection Kensico-Eastview Connection Tunnel $1,083,000,000

Department of Correction New Jail Facilities $1,065,627,000

Department of Homeless Services Major Repairs and Building Upgrades $213,200,000

City University CUNY-wide Rehabilitaion $204,403,000

Health and Hospitals Corporation Integrated Clinical Info System (ICIS) Program $191,854,000

Department of Parks and Recreation Purchase of Vehicles & Equipment $102,342,000

Brooklyn Public Library Central Library Renovation - Phase 1 $34,144,000

*As published in the April 2018 Executive Plan.


Benchmarks: How do we compare? Benchmarks are used to put financial information into context. Below, our City is compared to Philadelphia and Chicago. “Per Capita” means that the total dollar value is divided by the population for each city. For instance, “Debt per Capita” is the total bonded indebtedness divided by the population. This makes the debt figure relative to the population size of the city.

New York Philadelphia Chicago

Benchmarks – General Population (2017) 8,622,698 1,580,863 2,716,450

Tourists, in millions (2017) 62.8 43.3 55.2

Housing Units (2012-2016) 3,436,084 671,125 1,194,098

Median Gross Rent (2012-2016) $1,294 $943 $987

Land Area in Square Miles (2010) 302.6 134.1 227.6

Unemployment Rate (September 2018) 3.9% 4.1% 3.7%

Population per Square Mile (2010) 27,012.5 11,379.5 11,841.8

Park Acres (2016) 40,016 10,886 13,547

Ratio of Population to Uniformed Police Officers (2015) 240:1 245:1 227:1

General Fund Revenues $87,479,579,000 $3,708,116,000 $3,559,459,000

Total Government Funds - revenue per capita $10,504 $4,090 $2,576

Total Government Funds - expenditure per capita $11,522 $4,211 $2,704

Benchmarks – Debt Total Outstanding Debt - Primary Government $95,046,000,000 $7,170,200,000 $25,295,315,000

Debt Per Capita $11,023 $4,573 $9,384

City General Bonded Debt Payable - per capita $4,703 $1,323 $3,609

Total net debt applicable to the limit as a percentage of debt limit (percentage of the debt limit utilized) 72.35% 29.44% N/A

Net general obligation debt as a percentage of assessed taxable value of property 16.12% 3.79% 12.41%

General Obligation Bond Ratings*

Standard & Poor's AA A+ BBB+

Fitch AA A- BBB-

Moody's Aa2 A2 Ba1

*Rating explanations are available on the websites of each rating agency. Sources: New York City FY 2018 CAFR; Philadelphia FY 2017 CAFR; Chicago FY 2017 CAFR; U.S. Census Bureau; U.S. Bureau of Labor Statistics; NYC & Company; Visit Philadelphia; Choose Chicago; The Trust for Public Land; U.S. Bureau of Justice Statistics. All information provided represents currently available data.


Borough-Wide Statistical Information The data below provides a snapshot of the characteristics of each of New York City’s five boroughs − the Bronx, Brooklyn, Manhattan, Queens and Staten Island.

Category The Bronx Brooklyn Manhattan Queens Staten Island Population (2017) 1,471,160 2,648,771 1,664,727 2,358,582 479,458 Population growth, by percent (2010-2017) 6.20% 5.80% 5.00% 5.70% 2.30% Population 65 Years and Over, by percent (2017) 12.30% 13.50% 16.00% 15.00% 15.80% Population per square mile (2010) 32,904 35,369 69,468 20,554 8,030 Land area in square miles (2010) 42 71 23 109 58 Veteran population (2012-2016) 28,554 41,367 32,243 47,841 17,586 Foreign-born population, by percent (2012-2016) 34.90% 37.20% 28.90% 47.50% 21.90% Companies (2012) 135,782 296,858 315,399 265,643 39,645 Median household Income (2012-2016) $35,302 $50,640 $75,513 $59,758 $74,021 Students (2017) 402,223 655,266 335,535 537,038 115,917 Housing units (2017) 528,806 1,044,337 886,408 857,157 180,599 Median gross rent (2012-2016) $1,098 $1,262 $1,575 $1,401 $1,169 Median travel time to work in minutes (2012-2016) 43.5 42 31.4 43 43.2 Households without internet access, by percent (2017) 22.50% 19.00% 14.30% 15.70% 19.60%

Source: U.S. Census Bureau.

10 Largest New York City Private Sector Employers by Number of Employees

Employer No. of Employees

1. JPMorgan Chase & Company 249,257

2. Citigroup Inc. 219,000

3. ABM Industries Inc. 110,000 4. Pfizer Inc. 96,500 5. Icahn Enterprises 90,980 6. Philip Morris International Inc. 79,500 7. Omnicon Group Inc. 78,500 8. PricewaterhouseCoopers 60,790 9. Alcoa Corporation 60,000 10. Marsh & McLennan Companies 60,000

Source: Money Inc.

Four of Five New York City Boroughs Would Make the List of 15 Most Populous Cities Within the U.S.

Area Name Population (2017 estimate)

1. New York City (total) 8,622,698 2. Los Angeles 3,999,759 3. Chicago 2,716,450 4. Brooklyn 2,648,771 5. Queens 2,358,582 6. Houston 2,312,717 7. Manhattan 1,664,727 8. Phoenix 1,626,078 9. Philadelphia 1,580,863 10. San Antonio 1,511,946 11. The Bronx 1,471,160 12. San Diego 1,419,516 13. Dallas 1,341,075 14. San Jose 1,035,317 15. Austin 950,715

Please Note: The fifth borough, Staten Island, has a population of 479,458. Source: U.S. Census Bureau.


Things to Know

Checkbook NYC Checkbook NYC is an online transparency tool launched by New York City Comptroller’s Office. Using an intuitive dashboard approach that combines a series of graphs and user-friendly tables, Checkbook NYC provides up-to-date information about the City’s financial condition. On Checkbook you could find the following:

- City Agencies with the most spending

- Prime/Sub-Vendors doing business with the City

- City Budget information

- Information on City Agency contracts

- And much, much more

Services for the Public and Businesses Access the Office of the Comptroller’s Website to:

• File a Claim: Claims can be filed against the City of New York. The New York City Comptroller’s Office is responsible for overseeing the resolution and settlement of these claims.

• Pay My Claim: If you have settled a claim with the City, you could inquire about the status.

• Suggest an Audit: The Bureau of Audit welcomes ideas for audits to save the City money, increase revenues, or improve agency efficiency. Submit ideas here.

• Claim Wage Awards: If you worked for an employer covered by prevailing wage, living wage, and minimum average hourly wage requirements and were underpaid, the Comptroller’s Office may have already recouped the amount of your underpayment plus interest. Check here to see if your name appears on the list.

• Make FOIL Request: Citizens interested in accessing records from the Comptroller’s Office may do so through the Freedom of Information Law (FOIL).

• Prequalified CPA List (PQL): CPA firms interested in applying for placement on the PQL to be considered to provide audit services to City agencies, should access this page and complete the application.

• Obtain Certificate of Residence: If you are a student attending a New York State community college outside of New York City, rather than paying the higher tuition as a non-resident, qualified residents may receive a Certificate of Residence to pay the resident tuition fee while enrolled at the college. Click here to apply.


https://comptroller.nyc.gov/

https://comptroller.nyc.gov/services/for-the-public/claims/file-a-claim/

https://comptroller.nyc.gov/services/for-the-public/judgment-and-claim-settlement-payment-inquiry/overview/

https://comptroller.nyc.gov/services/for-the-public/suggest-an-audit/

https://comptroller.nyc.gov/services/for-the-public/nyc-wage-standards/unclaimed-nyc-wage-wage-awards/

https://comptroller.nyc.gov/services/for-the-public/freedom-of-information-law-foil-requests/overview/

https://comptroller.nyc.gov/services/for-businesses/prequalified-cpa/become-a-prequalified-cpa-firm/

https://comptroller.nyc.gov/services/for-the-public/certificate-of-residence/overview/

Accounting Terms Following are descriptions of some of the accounting terms used in this PAFR:

Assessed Value: A property’s assessed value is a percentage of its market value. The assessed value cannot exceed 6% of the home’s market value.

Blended Components Units (Blended): Entities, although legally separated from the City, for which the primary government is financially accountable. These Component Units provide services exclusively to the City.

Business-Type Activities: Component Units that were established to provide services to third parties, and intended to operate with limited or no public subsidy.

Capital Assets: These include all land, buildings, equipment, and other elements of the City’s infrastructure having an initial minimum useful life of five years, having a cost of more than $35,000, and having been funded by the Capital Budget.

Capital Budget: The budget that is exclusively used to fund Capital Projects, such as city construction, purchases of land, buildings, or equipment.

Capital Project: A project that meets the criteria of a capital asset and involves the construction, reconstruction, or acquisition of Long-Term Assets.

Discretely Presented Component Units: Component Units that are reported separately from the Primary Government. Although the City is financially accountable for them, they do not provide services exclusively to the government.

Expense Budget: A budget that covers the day-to-day operating expenditures and is financed by city taxes and other revenues along with State and Federal aid.

General Fund: The main operating fund of the City, which is used to finance the City’s operations.

General Revenues: Revenues, not properly included among Program Revenues, which the City raises through taxation and other means. General Revenues are available to be used for any authorized program or function.

Inception to Date Expenditures: Financial expenses from the start of a project through the specified fiscal year.

Primary Government: The various City agencies and other entities established to perform the City’s core functions and duties for its citizenry.

Program Revenues: Revenues that include charges for services such as rental revenue from operating leases on markets, ports, and terminals, and grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or program. Program revenues are collected and available for their respective programs and functions.


Our Elected Officials

Bill de Blasio Mayor

Scott M. Stringer Comptroller

Letitia James Public Advocate

Corey Johnson Council Speaker

Laurie Cumbo Council Majority Leader

Steven Matteo Council Minority Leader

Ruben Diaz, Jr. Bronx Borough President

Eric L. Adams Brooklyn Borough President

Gale A. Brewer Manhattan Borough President

Melinda Katz Queens Borough President

James S. Oddo Staten Island Borough President

Darcel D. Clark Bronx District Attorney

Eric Gonzalez Brooklyn District Attorney

Cyrus R. Vance, Jr. Manhattan District Attorney

Richard A. Brown Queens District Attorney

Michael E. McMahon Staten Island District Attorney

The elected officials depicted above are as of the fiscal year ended June 30, 2018


The Government of The City of New York


David N. Dinkins Municipal Building, New York, NY/Shutterstock


Acknowledgements

Scott M. Stringer, Comptroller

Bureau of Accountancy: Jacqueline Thompson, CFE, CIA, Deputy Comptroller for Accountancy Katrina Stauffer, Bureau Chief Man Hon Cheung, Assistant Bureau Chief/ Division Chief, Financial Reporting Leonel Ferreira, CPA, Division Chief of Capital & Technical and Professional Standards

Popular Annual Financial Report Developed and Prepared by: Technical and Professional Standards Unit, Bureau of Accountancy

Susanna Tregor, CPA, Assistant Division Chief Camille Arezzo, Accountant for Accounting Policy Joan Stapleton, Technical Writer/Project Coordinator

With Special Thanks to: Budget Bureau

Preston Niblack, Deputy Comptroller for Budget Eng Kai Tan, Bureau Chief Lawrence Mielnicki, Chief Economist Peter Flynn, Assistant Budget Chief

Bureau of Information Systems & Technology Mike Bott, Assistant Comptroller for Information Technology/CIO Troy Chen, Executive Director of App Development & Web Administration Antonnette Brumlik, Senior Web Administrator Angela Chen, Senior Web Developer & Graphic Designer

Bureau of Public Policy David Saltonstall, Assistant Comptroller for Policy Nichols Silbersack, Associate Director of Policy

Significant efforts were made by all staff of the Bureau of Accountancy and many others in the Office of the Comptroller and throughout the City to prepare the City’s fiscal year 2018 Comprehensive Annual Financial Report, from which much of the content of this report was adopted.

Comments or Suggestions Thank you for taking the time to learn about The City of New York’s financial strengths. If you have comments or suggestions on how we can improve the PAFR, please contact the Technical and Professional Standards Unit by email at [email protected], or by telephone at (212) 669-3675.



1 Centre Street, New York, NY 10007 • (212) 669-3500 • comptroller.nyc.gov

@NYCComptroller

NEW YORK CITY COMPTROLLER

SCOTT M. STRINGER

David N. Dinkins Building, New York, New York

Photo Credit: Sean Pavone/Shutterstock.com

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